The Jim Bakker Show

Venezuela’s monthly inflation rises to 34 percent: National Assembly

By Girish Gupta and Corina Pons

CARACAS (Reuters) – Venezuela’s monthly inflation rate jumped to 33.8 percent in August, with food price rises reaching hyper-inflationary levels above 50 percent, the opposition-controlled National Assembly said on Thursday.

The government stopped releasing the data more than a year ago amid a deep economic crisis, but the National Assembly has published its own figures since January. They are generally in line with private economists’ estimates.

The latest month-on-month inflation figure was a jump from the 26 percent rise in prices reported in July.

In the first eight months of 2017, prices rose a cumulative 366.4 percent, according to the legislative body.

“Food is now in hyperinflation,” said opposition lawmaker Angel Alvarado, adding that the food sector had seen price rises of 51 percent in August.

Economists usually define hyperinflation as occurring when monthly rates exceed 50 percent.

Millions of Venezuelans are suffering from food and medicine shortages as the oil producer struggles with an economic crisis that spurred months of nationwide unrest earlier this year.

However, the protests have died down in recent weeks, with many in the opposition viewing them as fruitless after socialist President Nicolas Maduro’s government sidelined the National Assembly and created its own legislative superbody.

‘ECONOMIC WAR’

The country’s bolivar currency also weakened past 20,000 per dollar on the widely-used black market on Thursday for the first time. It has lost 95 percent of its value against the U.S. currency in the past year.

The value of $1,000 in local currency purchased when Maduro came to power in April 2013 would now be worth $1.20.

Maduro blames the crisis on the country’s opposition and the United States, whom he says are waging an “economic war” against his government.

Critics blame Maduro’s economic policies including a currency policy that pegs the bolivar at 10 per dollar at the strongest rate and the strict price controls which they say disincentivize production.

Opponents also point to a rapidly rising money supply. The country’s M2 figure is up 431 percent in the last year alone.

The exponential rise in M2 – the sum of cash, together with checking, savings, and other deposits – means an exponential rise in the amount of currency circulating.

Coupled with a decline in the output of goods and services, that has accelerated inflation.

(Writing by Girish Gupta; Editing by Paul Simao)

Venezuelan opposition pins hopes on elections as protests falter

FILE PHOTO: Opposition supporters clash with riot security forces while rallying against President Nicolas Maduro in Caracas, Venezuela, May 10, 2017. REUTERS/Marco Bello/FIle Photo

By Brian Ellsworth

CARACAS (Reuters) – Venezuela’s opposition is shifting its focus to forthcoming state elections as protests aimed at ousting President Nicolas Maduro have subsided following the installation of an all-powerful, pro-government legislative body.

Four months of violent demonstrations in which at least 125 people were killed have all but stopped due to fatigue among protesters and disillusionment at seeing the ruling Socialist Party cement vast powers despite the concerted opposition push.

Most opposition leaders say October’s elections for governors in all the country’s 23 states now represent the best means to keep pressuring Maduro, providing a chance to win some of the governorships at stake and an opportunity for a protest vote to demonstrate the president’s unpopularity.

The opposition, which boycotted the elections for the Constituent Assembly, accused electoral authorities of inflating turn-out figures for the July 30 vote.

There are few options available for adversaries of Maduro, who maintains control over the OPEC nation despite widespread public anger about triple-digit inflation and chronic shortages of basic goods.

“Venezuelans are fighting against a continued rupture of the constitutional order,” said opposition leader Henrique Capriles, who is governor of Miranda state but who is not running in next month’s election and who is barred from holding public office once his term expires.

Nevertheless he urged Venezuelans to vote in the elections.

“If you abstain, then it’s more difficult to bring about the political change that all Venezuelans want,” Capriles told reporters. Capriles has called his own barring from office – because of alleged irregularities in managing public funds – a Socialist Party move to sideline him.

Governorships provide little in the way of a platform to directly challenge Maduro. But they are coveted by politicians because they offer launching pads for political careers and the possibility to channel state resources toward political allies.

The opposition’s participation in next month’s poll ensures it will have witnesses at voting stations and at the election council headquarters. Opposition coalition leaders say that should allow them to quickly identify any attempt to alter results.

However, some who spent months on the streets with the encouragement of opposition leaders, especially young members of a self-styled “Resistance” movement, feel betrayed.

They say turning attention so quickly to the election legitimizes what they view as Maduro’s authoritarianism and insults the memory of slain protesters. They also see a contradiction with the opposition’s decision to boycott July’s vote for the Constituent Assembly.

Maduro pushed for the creation of the assembly, which is meant to rewrite the constitution but which has no formal check on its powers, saying it would restore stability to a country in turmoil over the widespread anti-government protests.

It has broadly supplanted the Congress, which the opposition won control of in a 2015 landslide vote.

Small opposition party Vente Venezuela and its founder Maria Corina Machado, who has a high profile in the media but limited influence, broke with the opposition’s Democratic Unity coalition over its decision to join next month’s vote.

CANDIDATES TO BE BARRED?

The main opposition parties have nominated candidates and opinion polls show that in a free and fair vote they would likely take a majority, compared to just three governorships they won in 2012.

But the Socialist Party-controlled Constituent Assembly may bar some of them from running or from holding office if they win.

Last week, the assembly said it would seek the prosecution of opposition leaders for treason for attempting to block international financing for Maduro’s government and for allegedly seeking a military intervention against him.

Government leaders say the end of the protests is evidence the Constituent Assembly has brought peace to the country. They add that the opposition’s decision to register candidates is a sign they believe in the electoral system despite their complaints of fraud.

“The Constituent Assembly has calmed the country,” said assembly president Delcy Rodriguez. “As soon as it was inaugurated, Venezuela returned to tranquility.”

Maduro says the country is a victim of an “economic war” by the opposition, and insists the assembly is a symbol of Venezuela’s vibrant democracy.

The opposition took to the streets in late March to protest a Supreme Court ruling that briefly allowed it to assume the powers of Congress, and maintained near daily rallies until the end of July.

By then, street mobilizations were in decline and what had initially been massive marches steadily gave way to violent clashes between security forces and small groups of hooded demonstrators throwing rocks and at times vandalizing property.

Recent opposition rallies have attracted only a few hundred people.

U.S. President Donald Trump has imposed sanctions on top ruling Socialist Party officials, in some cases for their participation in the Constituent Assembly, while the European Union and most Latin American nations condemned the body.

Maduro has acquired the reputation as a dictator around the world, said opposition leader Freddy Guevara in an interview in August broadcast on the Internet, adding that street protests were crucial in shifting public opinion.

“I’m convinced that we have to confront the dictatorship in any situation that we can,” said Guevara.

(Reporting by Brian Ellsworth; Editing by Andrew Cawthorne and Frances Kerry)

Sore at Macron’s ‘dictatorship’ criticism, Venezuela blasts France

Venezuela's President Nicolas Maduro speaks during a meeting at Miraflores Palace in Caracas, Venezuela August 25, 2017. Miraflores Palace/Handout via REUTERS

CARACAS (Reuters) – Venezuela accused France on Wednesday of joining an “imperialist” campaign after President Emmanuel Macron portrayed the widely criticized socialist government as dictatorial.

Adding to criticism from Washington, the United Nations and major Latin American nations, Macron on Tuesday called President Nicolas Maduro’s administration “a dictatorship trying to survive at the cost of unprecedented humanitarian distress.”

Many countries are outraged at the Venezuelan government’s overriding of the opposition-led congress, crackdown on protests, jailing of hundreds of foes and failure to allow the entry of foreign humanitarian aid to ease a severe economic crisis.

Authorities say local opposition leaders want to topple Maduro in a coup with U.S. support, but its new Constituent Assembly will guarantee peace.

“Comments like this are an attack on Venezuelan institutions and seem to form part of the permanent imperialist obsession with attacking our people,” the government said in a communique responding to Macron.

“The French head-of-state’s affirmations show a deep lack of knowledge of the reality of Venezuela, whose people live in complete peace,” the statement said.

It added that the assembly and upcoming state elections demonstrated the health of local democracy.

Leaders of the fractious opposition coalition boycotted the July 30 election of the assembly, branding it an affront to democracy.

They called for an early presidential election, which Maduro would likely lose as his popularity has sunk along with an economy blighted by triple-digit inflation and food shortages.

France’s foreign ministry on Wednesday reiterated Macron’s comments and said it was studying the best way to accompany all initiatives that would enable credible dialogue that included regional countries.

“It is up to the Venezuelan authorities to give quick pledges in terms of respecting rule of law and fundamental freedoms,” spokeswoman Agnes Romatet-Espagne told reporters in a daily briefing. “The European Union and France will evaluate their relationship with Venezuela on this basis.”

(Reporting by Andrew Cawthorne in Caracas, Sudip Kar-Gupta in Paris; Editing by Girish Gupta/W Simon/Ken Ferris)

U.N. cites systematic use of excessive force in Venezuela crackdown on dissent

Zeid Ra'ad Al Hussein, U.N. High Commissioner for Human Rights attends a news conference on Venezuela at the United Nations Office in Geneva, Switzerland August 30, 2017. REUTERS/Denis Balibouse

By Stephanie Nebehay

GENEVA (Reuters) – The United Nations on Wednesday said Venezuela’s security forces had committed extensive and apparently deliberate human rights violations in crushing anti-government protests.

The actions indicated “a policy to repress political dissent and instil fear”, the U.N. human rights office said in a report that called for further investigation.

It called on the government of President Nicolas Maduro to release arbitrarily detained demonstrators and to halt the unlawful use of military courts to try civilians.

More than 1,000 people were believed to remain in custody as of July 31, among more than 5,000 detained in street protests since April, it said. Detainees are often subjected to ill-treatment, in some documented cases amounting to torture.

“Credible and consistent accounts of victims and witnesses indicate that security forces systematically used excessive force to deter demonstrations, crush dissent and instill fear,” it said in a report following initial findings issued on Aug 8.

Security forces have used tear gas canisters, motorcycles, water cannons and live ammunition to disperse the protesters, it said.

Venezuelan security forces and pro-government groups are believed to be responsible for the deaths of 73 people since April, while responsibility for the remaining 51 deaths has not been determined, the U.N. report said.

The overall toll of 124 includes nine members of the security forces that the government says were killed through July and four people allegedly killed by protesters, it said.

Some protesters have resorted to violent means, ranging from rocks to sling shots, Molotov cocktails and homemade mortars in protests against Maduro and shortages of food and other basic goods, it said.

Maduro has said Venezuela was the victim of an “armed insurrection” by U.S.-backed opponents seeking to gain control of the OPEC country’s oil wealth.

But as the political crisis deepened, the use of force by security forces has progressively escalated, the report said.

“The generalized and systematic use of excessive force during demonstrations and the arbitrary detention of protesters and perceived political opponents indicate that these were not the illegal or rogue acts of isolated officials,” it said.

U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein warned in a statement that amid the economic and social crises and rising political tensions, there was a “grave risk the situation in Venezuela will deteriorate further”.

The government must ensure that investigations begun by the state prosecutor Luisa Ortega — who was removed from her post this month after accusing Maduro of eroding democracy – continue and are scrupulously impartial, Zeid said.

Venezuela held nationwide armed forces exercises on Saturday, calling on civilians to join reserve units to defend against a possible attack after U.S. President Donald Trump warned that a “military option” was on the table for the crisis-hit country.

(Reporting by Stephanie Nebehay Editing by Jeremy Gaunt)

Trump slaps sanctions on Venezuela; Maduro sees effort to force default

By Alexandra Ulmer and David Lawder

CARACAS/WASHINGTON/ (Reuters) – U.S. President Donald Trump signed an executive order that prohibits dealings in new debt from the Venezuelan government or its state oil company on Friday in an effort to halt financing that the White House said fuels President Nicolas Maduro’s “dictatorship.”

Maduro, who has frequently blamed the United States for waging an “economic war” on Venezuela, said the United States was seeking to force Venezuela to default — but he said it would not succeed.

The order is Washington’s biggest sanctions blow to date against Maduro and is intended to punish his leftist government for what Trump has called an erosion of democracy in the oil-rich country, which is already reeling from an economic crisis.

It suggests a weakening in already strained relations between the two countries. Just three days ago, Maduro said the relations between Caracas and Washington were at their lowest point ever.

“All they’re trying to do to attack Venezuela is crazy,” said Maduro on a TV broadcast on Friday. “With the efforts of our people, it will fail and Venezuela will be stronger, more free, and more independent.”

Venezuela faces a severe recession with millions suffering food and medicine shortages and soaring inflation. The South American nation relies on oil for some 95 percent of export revenue.

Citgo Petroleum [PDVSAC.UL], the U.S. refiner of Venezuela’s ailing state-run oil company PDVSA, is “practically” being forced to close by the order, warned Maduro, adding that a preliminary analysis showed the sanctions would impede Venezuelan crude exports to the United States.

He said he was calling “urgent” meetings with U.S. clients of Venezuelan oil.

The new sanctions ban trade in any new issues of U.S.-dollar-denominated debt of the Venezuelan government and PDVSA [PDVSA.UL] because the ban applies to use of the U.S. financial system.

As a result, it will be it tricky for PDVSA to refinance its heavy debt burden. Investors had expected that PDVSA would seek to ease upcoming payments through such an operation, as it did last year, which usually requires that new bonds be issued.

Additional financial pressure on PDVSA could push the cash-strapped company closer to a possible default, or bolster its reliance on key allies China and Russia, which have already lent Caracas billions of dollars.

“They want us to fall into default,” said Maduro, adding that just under two-thirds of Venezuelan bond holders are in the United States.

Maduro insisted that Venezuela would continue paying its debts.

The decision also blocks Citgo Petroleum from sending dividends back to the South American nation, a senior official said, in a further blow to PDVSA’s coffers.

However, the order stops short of a major ban on crude trading that could have disrupted Venezuela’s oil industry and worsened the country’s faltering economy.

It also protects holders of most existing Venezuelan government and PDVSA bonds, who were relieved the sanctions did not go further. Venezuelan and PDVSA bonds were trading broadly higher on Friday afternoon.

“Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people,” U.S. Treasury Secretary Steven Mnuchin said on Friday.

Venezuela’s Oil Ministry and PDVSA did not immediately respond to a request for comment.

PDVSA UNDER PRESSURE

PDVSA, the financial engine of Maduro’s government, is already struggling due to low global oil prices, mismanagement, allegations of corruption and a brain drain.

Washington last month sanctioned PDVSA’s finance vice president, Simon Zerpa, complicating some of the company’s operations as Americans are now banned from doing business with him.

Trump has so far spared Venezuela from broader sanctions against its vital oil industry, but officials have said such actions are under consideration. The Republican president has also warned of a “military option” for Venezuela, although White House national security adviser H.R. McMaster said on Friday that no such actions are anticipated in the “near future.”

Venezuela has for months struggled to find financing because of PDVSA’s cash flow problems and corruption scandals have led institutions to tread cautiously, regardless of sanctions.

Russia and its state oil company Rosneft have emerged as an increasingly important source of financing for PDVSA, according to a Reuters report.

On at least two occasions, the Venezuelan government has used Russian cash to avoid imminent defaults on payments to bondholders, a high-level PDVSA official told Reuters.

“At this point our view is that the country can scrape by without defaulting this year, largely with the help of Chinese and Russian backing and by further squeezing imports. Next year is a tossup,” said Raul Gallegos, an analyst with the consultancy Control Risks.

However, China has grown reticent to extend further loans because of payment delays and corruption. Russia has been negotiating financing in exchange for oil assets in Venezuela, sources have told Reuters, but going forward it would be difficult for the OPEC member to provide enough assets to keep up loans destined for bond payments.

Venezuela’s government has around $2 billion in available cash to make $1.3 billion in bond payments by the end of the year and to cover the import of food and medicine, according to documents reviewed by Reuters.

(Reporting by David Lawder in Washington and Alexandra Ulmer in Caracas; Additional reporting by Deisy Buitrago, Girish Gupta, Eyanir Chinea, Corina Pons, Deisy Buitrago and Hugh Bronstein in Caracas, Marianna Parraga in Houston, Tim Ahmann and Ayesha Rascoe in Washington, Rodrigo Campos and Riham Alkousaa in New York; Writing by Alexandra Ulmer and Girish Gupta; Editing by Leslie Adler)

Venezuela’s injured activists struggle to heal

Jofre Rodriguez, 18, who was injured during a protest against Venezuela's President Nicolas Maduro's government, poses for a photograph at his home in Turmero, Venezuela, August 11, 2017. REUTERS/Ueslei Marcelino

By Andreina Aponte

CARACAS (Reuters) – Jesus Ibarra, a 19-year-old engineering student, has been barely able to walk or talk since a tear gas canister crushed part of his skull during a protest against President Nicolas Maduro and he fell unconscious into a river that carries sewage.

Chronic shortages of medicine in Venezuela forced his family to ask for drug donations so Ibarra could undergo five surgeries on his skull and treatment for infections from the Guaire river.

Ibarra, who cannot return to his studies any time soon, needs to a sixth operation and therapy. It is unclear if he will fully recover.

“I speak to my son a lot, and sometimes he makes me understand it was not worth suffering this, that he regrets it, that it was a mistake,” said Ibarra’s father Jose at their small home in the sprawling hilltop slum of Petare in Caracas.

“But other times he’s clearly telling me that it was worth fighting for a change he believes in.”

Ibarra is one of nearly 2,000 people injured during four months of fierce anti-Maduro street protests, according to the public prosecutor’s office. Rights groups think the number is probably higher.

Venezuela has been torn by political and economic crises that have led to extreme shortages of food and medicine, crushing inflation and the collapse of the local currency. Its new government structure has been criticized as a dictatorship.

Rubber bullets fired at close range, rocks, and tear gas canisters have caused most of the injuries, doctors and rights groups say. Most of those who have been hurt appear to be opposition protesters, but Maduro supporters, security forces and bystanders have also been harmed.

More than 125 people have died in the unrest since April. Thousands have been arrested.

The unpopular leftist president has said he was facing an armed insurgency intent on overthrowing him.

Opposition politicians have said they were forced to take to the streets after authorities curtailed democratic means for change. They have also accused security forces of using excessive force against protesters.

Culinary student Brian Dalati, 22, said he was passing an opposition-manned street barricade on his way to classes in July when police mistook him for a protester. They hit him and fired buckshot at his legs, fracturing both of Dalati’s shinbones.

“I depend on my siblings to go to the bathroom, shower, brush my teeth, eat, anything. It’s infuriating,” he said. “They didn’t have to do this. It was pure hate. Thank goodness I will be able to walk again soon.”

The government says right-wing media are too focused on injuries to protesters.

Maduro has pointed to a case in which a 21-year-old man was set afire during an opposition protest and died two weeks later. A Reuters witness said the crowd had accused the man of being a thief, but the government said he was targeted for being a Maduro supporter.

Protests have subsided since Maduro’s government established a controversial legislative superbody three weeks ago, but hundreds of Venezuelans are still struggling to nurse their wounds without medicine and state support.

(Click on http://reut.rs/2xt4eoS for related photo essay)

(Additional reporting by Ueslei Marcelino, Liamar Ramos, and Rodrigo Gutierrez; Writing by Alexandra Ulmer)

U.S. weighs ban on trade in Venezuela debt: U.S. official

President Donald Trump waves to Marines as he departs Marine Corps Air Station Yuma in Yuma, Arizona. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – The Trump administration is considering additional sanctions against Venezuela’s government, including a ban on trading the country’s debt, a U.S. administration official with knowledge of discussions said on Wednesday.

“It is just one option that is being talked about,” the official told Reuters, speaking on condition of anonymity.

The Wall Street Journal, which first reported on Tuesday the possibility that the United States could prohibit trading of some Venezuelan bonds, said one option would be a ban on trading of new debt issued by Venezuela or its state-owned entities, with an exemption for debt issued under the authority of the National Assembly that Maduro has stripped of power.

Venezuela bonds fell on Wednesday.

The Trump administration has imposed sanctions against Maduro and senior officials in his administration to punish them for what the United States sees as their role in undermining democracy in the oil-producing country.

On Aug. 9, Washington imposed sanctions against eight more individuals, including the brother of late socialist leader Hugo Chavez.

U.S. Vice President Mike Pence, speaking in Miami on Wednesday, said the Trump administration was ready to do more.

“You may be assured that under the leadership of President Donald Trump, the United States will continue to bring the full measure of American economic and diplomatic power to bear until democracy is restored in Venezuela,” Pence said, urging Latin America to also do more to pressure Maduro’s government.

“The United States has already issued three rounds of targeted sanctions against Maduro and his inner circle, and there is more to come,” Pence said.

Venezuela’s government has around $2 billion in available cash to make $1.3 billion in bond payments by the end of the year and to cover imports of food and medicine, Reuters reported in August.

The funds that could be used for debt payment include $1.3 billion in cash and IMF Special Drawing Rights held in central bank reserves, and $700 million in separate accounts that the central bank lists as “other financial assets,” according to a report by local firm Financial Synthesis.

(Reporting by Tim Ahmann and Lesley Wroughton; editing by Mohammad Zargham)

Venezuela-U.S. relations at lowest point ever: Maduro

Venezuela's President Nicolas Maduro talks to the media during a news conference at Miraflores Palace in Caracas, Venezuela August 22, 2017. REUTERS/Marco Bello

By Brian Ellsworth and Julia Symmes Cobb

CARACAS/BOGOTA (Reuters) – Relations between Caracas and Washington are at their lowest point ever, Venezuela’s President Nicolas Maduro said on Tuesday in a speech at the presidential palace for international media that was televised to the nation.

“Unfortunately we are in the worst moment of the relationship with the government of the United States,” said Maduro.

He said that he and U.S. President Donald Trump should be respectful of each other and that relations between Venezuela and the United States should be normalized and a dialog established. “You and I should talk,” said Maduro. “Only by speaking can we understand each other.”

Earlier this month during an impromptu session with reporters in Washington, Trump said, “The people are suffering and they are dying. We have many options for Venezuela including a possible military option if necessary.”

Maduro is struggling to weather a political crisis that has shaken his government, led to months of violent protests and his being accused of trying to establish a dictatorship through a new structure for the government that has been opposed nationally and internationally.

Venezuela is also racked by a severe economic crisis that has led to chronic shortages of food and medicine.

During his address on Tuesday, Maduro spoke at length about actions the United States has taken in the region and elsewhere, specifically mentioning the war in Iraq.

Maduro, like his predecessor Hugo Chavez, has frequently railed against Washington, blaming it for Venezuela’s problems, including crushing inflation and the collapse of the local currency.

In recent weeks, the government has cracked down on the opposition including one of Maduro’s most outspoken critics in his government, Venezuela’s top prosecutor Luisa Ortega.

Ortega fled to Colombia last week with her legislator husband after saying she feared for her life. She is now going to Brazil, according to Colombian authorities.

During his speech, Maduro said Venezuela would seek an international arrest warrant for Ortega, and he accused her of having worked with the United States for a long time.

(Reporting by Brian Ellsworth and Julia Symmes Cobb; Additional reporting by Diego Ore; Writing by Girish Gupta; Editing by Toni Reinhold)

Venezuela prepares world summit to defend new legislative body

Venezuela's President Nicolas Maduro gestures during a rally against U.S President Donald Trump in Caracas, Venezuela, August 14, 2017. REUTERS/Ueslei Marcelino

By Diego Oré

CARACAS (Reuters) – Venezuela is preparing an international summit to rally support for an all-powerful lawmaking body, whose recent creation drew widespread foreign condemnation as a power grab by leftist President Nicolas Maduro.

Late last month, and in the face of anti-government street protests, Venezuela elected a 545-member constituent assembly at the behest of Maduro.

On Friday the assembly granted itself lawmaking powers. It was the latest blow to an opposition-controlled congress whose decisions have been nullified by Maduro’s loyalist Supreme Court.

The United States slapped Maduro and a number of Venezuela leaders with sanctions, and U.S. President Donald Trump said military action was among the options he was considering for Venezuela.

“We have drawn up a plan to call a worldwide solidarity with the people of Venezuela, against Donald Trump’s threat and in defense of the constituent assembly,” Maduro said in a television interview on Sunday.

“This world summit will have a combination of preparatory events in various countries around the world, and it will start this week,” Maduro said.

Maduro said help with organizing the summit would come from a regional bloc called The Community of Latin American and Caribbean States (CELAC).

The constituent assembly was elected on July 30 to rewrite the constitution, which Maduro billed as the only solution to bring about peace after more than four months of deadly opposition protests.

The opposition boycotted the election, calling it an affront to democracy. It wants an early presidential election, which it is sure Maduro will lose as his popularity falls along with an economy blighted by triple-digit inflation and acute shortages of food and medicine.

A bloc of countries called the Lima Group, including Peru, Argentina, Brazil, Canada, Colombia and seven other nations in the hemisphere, late on Friday joined the United States in criticizing the assembly for “usurping” congress’s powers.

Anti-government marches have stalled since the assembly was inaugurated on Aug. 5. In its first working session, the assembly fired Venezuela’s chief prosecutor Luisa Ortega, who had accused Maduro of human right abuses.

Ortega fled to neighboring Colombia last week. Colombian President Juan Manuel Santos said on Monday that she was under the protection of his government and would be granted asylum if she requested it.

(Additional reporting by Julia Symmes Cobb in Bogota; Writing by Hugh Bronstein; Editing by W Simon)

Venezuela’s Maduro calls for military exercises after Trump threat

Venezuela's President Nicolas Maduro stands next to a sign that reads "Trump go away from Latin America" gives a speech at a rally against U.S President Donald Trump in Caracas, Venezuela August 14, 2017. REUTERS/Ueslei Marcelino

By Brian Ellsworth and Hugh Bronstein

CARACAS (Reuters) – Venezuelan President Nicolas Maduro on Monday called for military exercises after U.S. President Donald Trump’s threat of a possible armed intervention in the country, but Maduro insisted he still wanted to hold talks with the U.S. leader.

As Maduro told supporters in Caracas to prepare for an “imperialist” invasion, U.S. Vice President Mike Pence sought to calm concerns in the region about Trump’s talk, promising a peaceful solution to Venezuela’s “collapse into dictatorship.”

The unpopular Maduro, struggling with a disintegrating economy at home and increasing diplomatic isolation abroad, has used Trump’s comments on Friday to reaffirm long-standing accusations that Washington is preparing a military attack.

“Everyone has to join the defense plan, millions of men and women, let’s see how the American imperialists like it,” Maduro told supporters, urging them to join the two-day operation on Aug 26 and 27 involving both soldiers and civilians.

Thousands of government supporters rallied in Caracas where they denounced Trump’s suggestion of a “military option” to resolve Venezuela’s crisis.

Over 120 people have been killed since anti-government protests began in April, driven by outrage over shortages of food and medicine and Maduro’s creation of a legislative superbody that governments around the world say is dictatorial.

Maduro said Trump’s advisors had confused him about the true situation in Venezuela.

“I want to talk by phone with Mr. Trump, to tell him ‘They’re fooling you, Trump, everything they tell you about Venezuela is a lie. They’re throwing you off a cliff.'”

The White House last week rebuffed Maduro’s request to speak to Trump, saying the president would talk with Venezuela’s leader when the country returned to democracy.

‘FAILED STATE’

Earlier in the day, Defense Minister Vladimir Padrino appeared in a televised broadcast with dozens of battle-ready troops behind him at an army base, including soldiers with shoulder-fired missile launchers pointed skyward.

In a speech, he warned that the United States wanted to steal the OPEC nation’s oil reserves.

Late socialist leader Hugo Chavez frequently staged military exercises during his 14-year rule, many of which involved defending the country against mock foreign armies.

Critics generally dismissed them as bravado meant to distract from problems at home.

Venezuela’s opposition coalition on Sunday rejected foreign threats to the country. It did not specifically identify Trump or the United States, but criticized Maduro’s close relationship with Communist-run Cuba.

Vice President Pence said the United States would bring economic and diplomatic power to restore democracy in Venezuela.

“A failed state in Venezuela threatens the security and prosperity of our entire hemisphere and the people of the United States of America,” said Pence, speaking to reporters in the Colombian coastal city of Cartagena.

“The regime is experiencing change right now and what we’re witnessing is Venezuela is collapsing into dictatorship.”

Countries across Latin America, where the United States flexed its military muscles throughout the 20th century, rejected Trump’s comments and said U.S. intervention was unwelcome.

On Sunday night, in an apparent effort to ease alarm, Pence said the United States was confident that a peaceful solution could be found to the country’s political and economic crises.

The country last month, at Maduro’s behest, elected a “constituent assembly” with sweeping powers including the capacity to rewrite the constitution. Maduro says the assembly will bring peace to the country.

His adversaries boycotted the election, calling it a power grab meant to keep the ruling Socialist Party in power and insisting it will do nothing to tame soaring inflation or resolve food and medicine shortages.

(Additional reporting by Tim Ahmann in Washington and Julia Symmes Cobb in Bogota, Editing by Jeffrey Benkoe and Andrew Hay)

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